Financial Times FT.com

Bernanke calms nationalisation fears

By Krishna Guha in Washington

Published: February 24 2009 16:40 | Last updated: February 25 2009 00:40

Stress tests of big US banks that start this week are unlikely to lead to any of them being seized by regulators and nationalised outright, Federal Reserve chairman Ben Bernanke told Congress on Tuesday.

His comments provided the clearest signal yet that US authorities hope to support major banks as going concerns in the private markets, taking equity stakes as necessary to shore up their capital in what would amount to partial nationalisations.

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